India–UAE CBDC Link: e-Rupee and Digital Dirham Plan
Why in the news
In March 2026 it was reported that India and the UAE plan to join their digital currencies for near-instant cross-border payments.
Key facts
- Currencies: e-Rupee (India) and Digital Dirham (UAE).
- Mechanism: direct wallet-to-wallet transfer.
- Remittance share: UAE gives about 19.2% of India’s inward remittances; over 4 million Indians live there.
Retail versus wholesale CBDC
| Type | Users | Purpose |
|---|---|---|
| Retail CBDC | Individuals | Payments to users or merchants |
| Wholesale CBDC | Banks | Interbank and large-value settlement |
Possible uses
- Remittances (person-to-person)
- B2B, B2C and G2G payments
- A parallel channel beside bank transfers
Why it matters
- Faster digital transfers could cut remittance cost and time
Exam angle
- Regulators: RBI and the UAE central bank.
- Know retail versus wholesale CBDC.